There is a reason why Warren Buffett is one of the richest men in the world and 99.9999% of investors are not... because he is the ultimate contrarian to the way most Americans invest in the markets.

By this I am referring to the fact that Buffett is the quintessential value investor while the majority of retail and Wall Street investors buy on MoMo (momentum), and only when an asset is going up in price.

Yet because Americans are programmed to buy on momentum rather than on value, it is very unlikely that U.S. investors will be buyers of gold and silver now that the price has fallen well below their all-time highs of six years ago, and have remained beaten down despite the fact that the Fed is now raising rates, and the dollar has fallen nearly 9% since the beginning of the year.

So far in 2017,
stocks have been under significant control of the “momo” (momentum) crowd. The
momo crowd does not care about the economy or fundamentals. Momo simply buys
because the price is going up.

It is no different
now. Momo is totally oblivious to the weak economic data. In contrast, the
“smart money” (professional investors) cares about the economic data.
Investing along with
momo is a fine technique but investors must be careful about two things.

• Playing with momo
is like playing musical chairs. Sooner or later, the music stops and someone is
left standing.

• From the large
number of emails I have received from investors and social media, the momo
crowd is driven only by price. Often such investors do not even have a good
grasp of what a company does, yet they buy large quantities based on price
momentum.

Investors who are not especially nimble may consider staying away
from this approach. - Marketwatch

Despite the fact that much of the rest of the world (UK, China, India, Russia, Dubai) are buying gold at high levels, Americans will be the last to the table when the economic reasons behind owning precious metals reveal themselves in shocking fashion. And if we thought the shortages in silver that led to the price going as high $50 in 2011 were spectacular, just wait until individuals rush towards the door for gold and silver this time as there will be little left available, no matter how much momentum is driving the price up.